The future of the paper money - page 204.

deisik

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Quote from: aesma on August 20, 2016, 06:28:42 PM

I'm going to ask you the question in reverse. If I give you two choices : holding a fortune of 1 million dollars in paper money in your house, or 1 million dollars in gold in your house, what do you choose ? You can't invest or anything like that, just hold it.

Your dilemma is meaningless (like choosing an integer number between 2 and 3). Money is only a handy intermediary in the exchange of goods and services (one should never forget that). It doesn't have value of its own (digital money as the most extreme example), apart from the transactional utility only. So if I had to keep 1M dollars and couldn't spend it, that would be basically equal to having no money at all. The situation with gold is essentially the same, though (unless you are a gold bug or just like the shine of the metal, indeed). But if I could spend both the gold (sell it) and the money, I would indeed go for 1M dollars...

Since with money I can buy anything (including gold) while I would have to first sell gold to get the same 1M dollars as money

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Quote from: deisik on August 20, 2016, 04:43:33 PM

If you are going to argue that point (or anyone else), think first about how the same paper money would be backed up by gold (or silver, or anything else, for that matter)...

And then try to find a fundamental difference, if there is any

When money was backed by gold you could go to the bank and ask for the gold in exchange for your bills.

I guess it's not different in the sense that you had to trust the government even then.

I'm going to ask you the question in reverse. If I give you two choices : holding a fortune of 1 million dollars in paper money in your house, or 1 million dollars in gold in your house, what do you choose ? You can't invest or anything like that, just hold it.

The value of gold will change, but it will always be worth something. If the US government collapses, your paper bills are suddenly worth a few hours of heating your house by burning them.

Lorik

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Paper money is cheaper banknotes that people can carry with them. But if the trade goes in the world in a different way and pick up the popularity of non-cash payment, the paper money will come to an end.

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Quote from: aesma on August 20, 2016, 04:28:52 PM

Quote from: deisik on August 19, 2016, 03:55:03 PM

Quote from: tyz on August 19, 2016, 02:44:36 PM

Paper money as it currently exists has no future. However if paper money is covered one hundred percent by Gold, Bitcoins, Silver or something else which can not created just out of air, then it could have a future. The mess started when elites decided to abolish Gold covered paper money.

I assume that in your variety of economics goods produced and services rendered don't count as something else which is not created just out of air? If so, you essentially deprive the total majority of real goods (save for gold, silver and something else which is not goods) of their value and usefulness to people...

Which obviously doesn't make much sense. And what's the inference then?

Goods and services are worth something obviously, the problem is on the other side of the trade : paper money isn't worth anything. Its only worth is that you trust a government for its value. And what do governments nowadays ? They print boatloads of money out of thin air, making every Dollar/Euro/JPY etc. worth a little less every second

If paper money weren't worth anything, you wouldn't be able to buy anything with it, a simple fact of life. So as long as you can buy something worthy with it, it is worth just that. This is another fact. This logic necessarily leads to a conclusion that paper money is backed up by all the goods which can be bought with it and all the services which can be offered for it. That's the inference I referred to in my previous post. If you are going to argue that point (or anyone else), think first about how the same paper money would be backed up by gold (or silver, or anything else, for that matter)...

And then try to find a fundamental difference, if there is any

aesma

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Quote from: deisik on August 19, 2016, 03:55:03 PM

Quote from: tyz on August 19, 2016, 02:44:36 PM

Paper money as it currently exists has no future. However if paper money is covered one hundred percent by Gold, Bitcoins, Silver or something else which can not created just out of air, then it could have a future. The mess started when elites decided to abolish Gold covered paper money.

I assume that in your variety of economics goods produced and services rendered don't count as something else which is not created just out of air? If so, you essentially deprive the total majority of real goods (save for gold, silver and something else which is not goods) of their value and usefulness to people...

Which obviously doesn't make much sense. And what's the inference then?

Goods and services are worth something obviously, the problem is on the other side of the trade : paper money isn't worth anything. Its only worth is that you trust a government for its value. And what do governments nowadays ? They print boatloads of money out of thin air, making every Dollar/Euro/JPY etc. worth a little less every second.

aesma

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Quote from: dunfida on August 19, 2016, 11:26:24 PM

Quote from: GamingBro on August 19, 2016, 06:58:33 PM

I like paper money cause it's very comfotable to use, and i think that many people likes paper money, i am not sure that we will see digital money everywhere soon.

Paper money would stood still until the end of time i guess since its been used for how many centuries and its not easy to be replaced by another like some people claim that bitcoin could replace fiat then its impossible, bitcoin have the potential to fully developed in the future but it wouldnt replace paper currency.

Paper money is pretty new. And in some places it's not even widely accepted, people don't trust it, with reason (ever heard of Zimbabwe ?). Or people don't have use for it, they just own a few acres or farm animals and trade what they got for what they need.

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Quote from: asriloni on August 20, 2016, 07:27:56 AM

Quote from: data1 on August 09, 2016, 02:13:34 PM

sad but paper money can not develop much their main problems are the durability of their money and continiously printing more and more money which is normally reducing their currency value

definitely right,paper money could be easily destroyed,and just compare dollar when in 1900 and now,the value is really different,if the paper money still being used until a hundreds years later,maybe we will pay a milk for 1 million dollar,such a decreasing value of the money just like in zimbabwe

It is very simple for them to print another paper money to be use, and if you take notice in the past, we are still using paper money until now and they just simple change the design or laber of the paper money, it will never be lost in the circulation as that is the simplest means of transaction for all the people.

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Quote from: data1 on August 09, 2016, 02:13:34 PM

sad but paper money can not develop much their main problems are the durability of their money and continiously printing more and more money which is normally reducing their currency value

definitely right,paper money could be easily destroyed,and just compare dollar when in 1900 and now,the value is really different,if the paper money still being used until a hundreds years later,maybe we will pay a milk for 1 million dollar,such a decreasing value of the money just like in zimbabwe

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Quote from: GamingBro on August 19, 2016, 06:58:33 PM

I like paper money cause it's very comfotable to use, and i think that many people likes paper money, i am not sure that we will see digital money everywhere soon.

behind the comfortable,there's so many bacteria and viruses on paper money,digital money is really a best option for the sake of your health and for your hygiene,to be honest,quite disgusting to use paper money,some survey said that paper money even worst than your toilet

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Quote from: Jonar21 on August 20, 2016, 07:04:54 AM

Quote from: vindicare on August 20, 2016, 03:11:22 AM

paper money will not be replaced by bitcoin for 100% because not all people is technical even if we say were in a pace that we are advancing on our technology . some will say that it is too much hassle to use that and some will say its better than the paper money. unless we will have some big time war that paper money can't buy any goods which we will come back to the goods to goods trading like ancient times.

But paper money can be forged if we apply high technology and so can undermine the economy of the state. But it's not that. But digital currency can not fake.

Those who can apply that high a technology (read possess such a technology in the first place) to counterfeit some state's money usually have a lot of other things to do with this technology. On the other hand, the history knows a few occurrences when one state had been deliberately counterfeiting another state's currency...

Both paper money and specie

tygeade

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Quote from: Jonar21 on August 20, 2016, 07:04:54 AM

Quote from: vindicare on August 20, 2016, 03:11:22 AM

paper money will not be replaced by bitcoin for 100% because not all people is technical even if we say were in a pace that we are advancing on our technology . some will say that it is too much hassle to use that and some will say its better than the paper money. unless we will have some big time war that paper money can't buy any goods which we will come back to the goods to goods trading like ancient times.

But paper money can be forged if we apply high technology and so can undermine the economy of the state. But it's not that. But digital currency can not fake.

Bitcoin cannot be forged but it can be hacked by the scammers, both holds certain advantages and disadvantages and I think both will survive in long run as both holds different kind of users who will continue to use according to their convenience.

deadpoolx

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The paper money problems are clear, a long way until people replace it for digital currency though.

Jonar21

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Quote from: vindicare on August 20, 2016, 03:11:22 AM

paper money will not be replaced by bitcoin for 100% because not all people is technical even if we say were in a pace that we are advancing on our technology . some will say that it is too much hassle to use that and some will say its better than the paper money. unless we will have some big time war that paper money can't buy any goods which we will come back to the goods to goods trading like ancient times.

But paper money can be forged if we apply high technology and so can undermine the economy of the state. But it's not that. But digital currency can not fake.

eddyubachs

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Quote from: Hatuferu on August 20, 2016, 01:13:39 AM

Quote from: ImHacked on August 20, 2016, 12:06:36 AM

Quote from: Huobi-USD on September 21, 2015, 03:23:32 AM

Paper money will be banned entirely?
How long do you think that happens?
would it work?
What security and privacy risks would it raise?
And how would public and privately issued monies interact?

I do not think that would happen on our days. Maybe a hundred years from now where technology could traverse the whole world especially those who as of these days do not have electricity. A lot of intricate and explicit study is needed in banning a paper money as everyone uses it. It is the easiest way to pay and to buy things that we need.

And that would not happen any day because paper money is very easy to use and you can transact anytime you want, not all countries are aware of the online world and there are those illiterate people who does not know how to read and write buy can only transact using paper money.

Yeah people will use only that form of money with which they are comfortable and find easy to use and for them paper money is the only option as they are using it since long time.

antonioa

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Maybe I'm old-fashioned paper money, but it's like that book more pleasant to read in the paper form with a leather binding. While convenience only digitally obvious. So it is with money. But still paper money not only warm pocket and soul.

Cresciuanto

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i think there is not wrong to the future of bitcoin, to me the future of bitcoin is really bright in near future, because the digital currencies are not yet in position to take the place of fiat currency, in future it is possible that some people will be using bitcoin or any any other crypto currency, but still most of the people will be using paper money, i think it will take generation when majority of the people will be using crypto currencies for trading, shopping and for other activities.

vindicare

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paper money will not be replaced by bitcoin for 100% because not all people is technical even if we say were in a pace that we are advancing on our technology . some will say that it is too much hassle to use that and some will say its better than the paper money. unless we will have some big time war that paper money can't buy any goods which we will come back to the goods to goods trading like ancient times.

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Quote from: ImHacked on August 20, 2016, 12:06:36 AM

Quote from: Huobi-USD on September 21, 2015, 03:23:32 AM

Paper money will be banned entirely?
How long do you think that happens?
would it work?
What security and privacy risks would it raise?
And how would public and privately issued monies interact?

I do not think that would happen on our days. Maybe a hundred years from now where technology could traverse the whole world especially those who as of these days do not have electricity. A lot of intricate and explicit study is needed in banning a paper money as everyone uses it. It is the easiest way to pay and to buy things that we need.

And that would not happen any day because paper money is very easy to use and you can transact anytime you want, not all countries are aware of the online world and there are those illiterate people who does not know how to read and write buy can only transact using paper money.

ImHacked

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Quote from: Huobi-USD on September 21, 2015, 03:23:32 AM

Paper money will be banned entirely?
How long do you think that happens?
would it work?
What security and privacy risks would it raise?
And how would public and privately issued monies interact?

I do not think that would happen on our days. Maybe a hundred years from now where technology could traverse the whole world especially those who as of these days do not have electricity. A lot of intricate and explicit study is needed in banning a paper money as everyone uses it. It is the easiest way to pay and to buy things that we need.

bluechipinvestor

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Interesting thoughts, I believe that over time the paper money will become obsolete. The convenience of electronic payment systems brings great market opportunities ahead.

Topic: The future of the paper money - page 204. (Read 416566 times)